Oil Prices Soar on Jazan Strike Before Easing Back

The oil price surged on Tuesday following reports of a strike at the Jazan refinery in Saudi Arabia, which handles 400,000 barrels per day. Brent crude hit $99.22 and WTI reached $94.60 before easing back to $98.61 and $92.85 respectively.

The attack, attributed to Iran-aligned Houthi militants, wounded at least 73 people and forced the suspension of operations at several oil facilities and utilities. The refinery's shutdown removes product from the market, rather than crude, which could lead to imports or diverted exports.

This is not an isolated incident, Saudi Arabia's energy infrastructure has been targeted repeatedly over the past seven months, forcing temporary shut-ins and damage assessments.